If getting your finances in order is one of your goals in the new year, an expert at Virginia Tech has some tips to help you reduce your debt.
Erin Cox, an associate Extension specialist for Family and Community Economics for Virginia Cooperative Extension, recommends three things: create a plan, make a budget, and stick to it.
“Health and financial well-being go hand in hand. Don’t have a passive relationship with your finances,” Cox said. “If you have someone in your family or a close friend who appears successful at managing their finances, consider asking them for help.”
Her advice includes paying off credit card debt as quickly as possible and being weary of “buy now, pay later” options.
“Learn to save and be mindful of where your money is going so you don’t have to carry that burden of debt,” she said. “When big changes happen, don’t make a big change by adding more debt.”
The snowball method of debt repayment, starting with the smallest debt first, is effective, and it can psychologically motivate you to put these debts behind you, she said.
With interest-free payment offers, many people tend to spend more than planned, and it can lead to steep fees if a payment is missed.
Cox also recommends using your skills or talents to create a unique, one-of-a-kind gift for birthdays and other occasions.
“One of the greatest gifts I ever received was a ‘make and take’ dish that a very talented friend made and gave to me to take and enjoy,” she said.
Virginia Cooperative Extension resources
- Master Financial Education Volunteer Program
- How to Make Your Money Go Further, 2020
- Managing Prosperity, 2022
- Farmer Financial Health and Wellbeing Assessment: A Tool for Fostering Supportive Financial Conversations, 2020
- Advanced Directive Information in Virginia
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Crystal Graham
